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HGears AG (XTER:HGEA) Financial Strength : 6 (As of Jun. 2024)


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What is HGears AG Financial Strength?

HGears AG has the Financial Strength Rank of 6.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

HGears AG did not have earnings to cover the interest expense. HGears AG's debt to revenue ratio for the quarter that ended in Jun. 2024 was 0.28. As of today, HGears AG's Altman Z-Score is 0.70.


Competitive Comparison of HGears AG's Financial Strength

For the Auto Parts subindustry, HGears AG's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


HGears AG's Financial Strength Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, HGears AG's Financial Strength distribution charts can be found below:

* The bar in red indicates where HGears AG's Financial Strength falls into.


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HGears AG Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

HGears AG's Interest Expense for the months ended in Jun. 2024 was €-1.3 Mil. Its Operating Income for the months ended in Jun. 2024 was €-7.0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2024 was €19.4 Mil.

HGears AG's Interest Coverage for the quarter that ended in Jun. 2024 is

HGears AG did not have earnings to cover the interest expense.

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

HGears AG's Debt to Revenue Ratio for the quarter that ended in Jun. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(8.54 + 19.351) / 100.908
=0.28

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

HGears AG has a Z-score of 0.70, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 0.7 is in distress zone. This implies bankruptcy possibility in the next two years.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


HGears AG  (XTER:HGEA) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

HGears AG has the Financial Strength Rank of 6.


HGears AG Financial Strength Related Terms

Thank you for viewing the detailed overview of HGears AG's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


HGears AG Business Description

Traded in Other Exchanges
N/A
Address
Brambach 38, Schramberg, BW, DEU, 78713
HGears AG is a manufacturer of high-precision gears and components. The company divides its business into three areas. The e-Mobility focuses on products for e-bike drive systems and drive train units for electric and hybrid vehicles; the e-Tools focuses on components utilized in the powering mechanism of battery-driven (e-drive), the Conventional automotive and industrial applications focus on gear units for various applications, such as rolling shutters and systems for heating, ventilation and air conditioning, motorbikes and non-combustion part precision components for premium and luxury vehicles. The company consists of one operating segment, the production of high-precision gears and components.
Executives
Sven Arend Board of Directors
Volker Stauch Supervisory Board
Daniel Basok Board of Directors
Daniel Kartje Supervisory Board
Christophe Hemmerle Supervisory Board
Dr. Gabriele Fontane Supervisory Board
Mathias Seidler Supervisory Board
Pierluca Sartorello Board of Directors

HGears AG Headlines

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